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The time limit for paying personal income tax in Vietnam

Personal income tax is an important issue that any employee must pay close attention to. However, many people still do not know how to determine the personal income tax payment deadline. To provide more information to customers about the time limit for paying personal income tax in Vietnam, Viet An Law publishes the article below.

Tax advisors

Legal basis

  • Law on Tax Administration 2019;
  • Decree 125/2020/ND-CP on Regulations on penalties for administrative violations of taxes and invoices;
  • Decree 126/2020/ND-CP amending and supplementing Decree 91/2022/ND-CP;
  • Official dispatch 5189/TCT-CS of the General Department of Taxation;
  • Official dispatch 2393/TCT-DNNCN of the General Department of Taxation.

The time limit for paying personal income tax in Vietnam

The deadline for paying personal income tax is specified in Article 55 of the Law on Tax Administration 2019, accordingly, the deadline for paying personal income tax will be calculated as follows:

  • In case a taxpayer calculates tax, the latest deadline to pay tax will be calculated as the last day of the tax declaration submission deadline;
  • In case an additional declaration is added to the tax declaration, the tax payment deadline will be considered the tax declaration submission deadline of the tax period with errors or omissions.
  • In case the tax authority calculates tax, the time limit by which the taxpayer must pay is the time limit recorded according to the tax authority’s notice.

According to the provisions of Article 8.1(a)(c), Article 9.1(b) of Decree No. 126/2020/ND-CP:

  • If an enterprise declares VAT monthly, it must declare personal income tax monthly.
  • If an enterprise declares VAT quarterly, it shall declare personal income tax quarterly.

The time limit for paying personal income tax in case the taxpayer calculates tax

In case a taxpayer calculates tax, the tax payment deadline will depend on the last day of the tax declaration submission deadline. The issue of deadlines for submitting tax declarations has been detailed by Vietnamese law in Article 44 of the Law on Tax Administration 2019. Specifically, the deadline for submitting tax declarations is divided into:

In cases where the type of tax that needs to be filed is a monthly or quarterly tax, the deadline for submitting tax returns for these types of taxes will be as follows:

  • The latest tax payment deadline for monthly tax declaration and payment is the 20th day of the month following the month in which the tax liability arises;
  • The latest tax payment deadline for cases where tax is declared and paid quarterly is the last day of the first month of the quarter following the quarter in which the tax liability arises.

For taxes that have an annual tax period, the deadline for submitting tax declarations for these taxes will be specified as listed below:

  • From the end of the calendar year or fiscal year for annual tax finalization dossiers, the latest deadline to submit tax declaration dossiers is the last day of the 3rd month.
  • From the end of the calendar year for personal income tax finalization dossiers for individuals who directly participate in tax finalization, the latest deadline for submitting tax declaration dossiers will be on the last day of the 4th month.

For taxes that are declared and paid each time a tax liability arises, the latest deadline for submitting a tax declaration will be the 10th day from the date the tax liability arises.

In the case where the taxpayer declares tax through electronic transactions on the last day of the tax declaration submission deadline, however, if the tax authority’s electronic information portal has a problem, it will occur the next day. After the tax agency’s electronic information portal continues to operate, taxpayers will have to submit tax declaration documents and electronic tax payment documents.

Extend the time limit for submitting tax returns

However, the above tax declaration submission deadline can be extended if it falls into one of the cases listed in Article 46 of the Law on Tax Administration 2019. Specifically, in cases of natural disasters, catastrophes, epidemics, fires, or unexpected accidents that cause taxpayers to be unable to submit tax declarations on time, the head of the tax agency directly managing them will extend the time limit for submitting tax declarations.

The above tax declaration submission extension time will be more than 30 days for submitting tax declarations with taxes declared monthly, quarterly, annually, and each time a tax liability arises.

In addition, from the date of receiving the written request for an extension, within 3 working days, the tax authority must issue a written response to the taxpayer regarding approval or non-approval of the tax return filing extension.

The time limit for paying personal income tax in case the taxpayer makes additional declarations in the tax declaration dossier

  • According to Article 47 of the Law on Tax Administration 2019, when a taxpayer discovers errors in the submitted tax declaration, he/she can make an additional tax declaration within 10 years from the date of expiry of the tax declaration submission time limit of the tax period due to errors.
  • However, in this case, taxpayers can only make additional declarations before the tax authority or competent authorities announce the inspection and examination decision. That is, once the competent authority has issued an inspection or examination decision, the taxpayer will not be allowed to declare additional tax records.
  • However, there is also an exception to the above case, that is, when this inspection or examination decision is announced at the taxpayer’s headquarters, the taxpayer still can make additional tax declaration documents. before.

Taxpayers may make additional declarations in their tax declaration records when they fall into one of the following cases:

  • Cases that increase the tax amount that taxpayers must pay;
  • Cases that reduce the amount of tax that is deductible;
  • Cases that reduce the tax amount are considered exemption, reduction, or refund;
  • And be fined for major violations of tax administration for the acts specified in Article 142 and Article 143 of the Law on Tax Administration 2019.

In the case of additional declaration of tax declaration by the tax preparer when discovering that the tax declaration has errors or omissions, which leads to a decrease in the tax amount payable or an increase in the deductible tax amount, or increase the amount of tax exempted, reduced, or refunded, the taxpayer will comply with the provisions of the law on resolving tax complaints.

The time limit for paying personal income tax in case tax authorities calculate tax

In case the tax authority calculates tax, the taxpayer’s tax payment deadline will comply with the regulations specified in Clause 2, Article 55 of the Law on Tax Administration 2019. Accordingly, when the tax authority calculates tax, the deadline for taxpayers to pay tax will be the deadline recorded according to the tax authority’s notice.

This also means that, when the tax authority calculates tax, taxpayers will not be allowed to pay tax at any time, but taxpayers will only be able to pay tax when the tax authority has notified them of the deadline. tax payment deadline.

Therefore, if this is the case where the tax authority calculates tax, the taxpayer will have to pay attention to the tax authority’s notice to be able to determine the correct tax payment deadline and avoid paying tax after the announced deadline. newspaper.

Some questions related to the time limit for paying personal income tax in Vietnam

Will businesses be fined for late submission of personal income tax returns and late payment of personal income tax?

In case an enterprise submits a personal income tax declaration late, it will be subject to administrative penalties according to the provisions of Article 13 of Decree 125/2020/ND-CP effective from December 5, 2020.

In case an enterprise incurs late payment of personal income tax, it will be charged a late payment interest rate of 0.03%/day calculated on the amount of late tax payment.

Do businesses that do not incur personal income tax have to submit personal income tax returns?

Under Point b, Clause 3, Article 7 of Decree 126/2020/ND-CP, taxpayers do not have to submit tax declaration documents when they fall into the case of individuals with tax-exempt income according to the provisions of the law on personal income tax.

Regarding the tax deduction method, according to Official Dispatch 5189/TCT-CS dated December 7, 2020, of the General Department of Taxation on tax declaration dossiers, it is stipulated that organizations and individuals paying income do not incur income tax deductions. Personal income on a monthly or quarterly basis must still be declared tax (Point b, Clause 3, Article 7). This guidance is a new point to note compared to the previous regulations in Article 16 of Circular No. 156/2013/TT-BTC.

In case an organization or individual does not pay personal income taxable income in any month/quarter, they do not have to declare personal income tax for that month/quarter. According to the guidance in Official Dispatch 2393/TCT-DNNCN dated July 1, 2021, of the General Department of Taxation, determining whether an enterprise does not incur personal income tax must submit a personal income tax declaration is divided into the following cases:

  • In case an enterprise has to pay income subject to personal income tax, regardless of whether personal income tax is deducted or not, it must still submit a personal income tax declaration for that month/quarter. In other words, if a business pays wages to employees, it must submit a personal income tax return.
  • On the contrary, if the enterprise does not pay income subject to personal income tax, it does not have to submit a personal income tax return for that month/quarter. In other words, if the business does not pay wages, it does not have to file a personal income tax return.

Does an enterprise that does not pay salaries to employees have to submit an annual settlement declaration?

Based on Article 8 of Decree 126/2020/ND-CP, as amended and supplemented by Article 1 of Decree 91/2022/ND-CP, organizations and individuals paying income from salaries and wages are responsible for declaring tax payment and finalization on behalf of authorized individuals are paid by income-paying organizations and individuals, regardless of whether tax deductions arise or not. In cases where organizations and individuals do not pay income, they do not have to declare personal income tax finalization.

Therefore, it can be concluded as follows:

  • Enterprises, whether or not they incur personal income tax deductions, must still submit a personal income tax finalization declaration at the end of the year.
  • Only in cases where the business does not pay income (does not pay salaries to any employees), it does not have to submit a personal income tax finalization declaration at the end of the year.

Penalties for late submission of personal income tax returns

Under Article 13 of Decree 125/2020/ND-CP regulating penalties for violations of the tax declaration submission deadline, specifically as follows:

Number of days of late submission Penalties (Decree 125/2020/ND-CP)
Submit your tax declaration 1 day to 5 days past the deadline and there are extenuating circumstances. Caution
Submitting tax declaration documents to the tax authority within the prescribed time limit from 01 day to 30 days 2,000,000 VND – 5,000,000 VND
Submit your tax return 31 to 60 days beyond the prescribed time limit 5,000,000 VND – 8,000,000 VND
·       Submit your tax return 61 to 90 days beyond the prescribed time limit.

·       Submitting a tax declaration 91 days or more beyond the prescribed time limit but not incurring any tax payable.

·       Failure to submit tax declaration but no tax payable arises.

·       Failure to submit appendices according to regulations on tax administration for enterprises with associated transactions along with corporate income tax finalization dossiers.

8,000,000 VND – 15,000,000 VND
Submit tax declaration:

·       Exceeding the deadline of more than 90 days from the due date of submitting tax declaration documents;

·       There is a tax payable;

·       The taxpayer has paid the full amount of tax and late payment interest into the state budget before the tax authority announces the tax audit or tax inspection decision or before the tax authority makes a record of the late payment act. Tax declaration documents as prescribed in Clause 11, Article 143 of the Law on Tax Administration.

15,000,000 VND – 25,000,000 VND

Some notes for taxpayers related to the personal income tax payment time limit

Tax payment deadlines in different cases will have different tax payment deadlines. These cases are all specifically regulated by Vietnamese law in the Law on Tax Administration 2019. Therefore, taxpayers need to determine which case they are in to be able to comply. Pay your taxes on time.

However, in reality, determining tax payment cases and deadlines can create more complicated problems, making it difficult for taxpayers to accurately determine the time limit they have to pay income tax. enter personally.

Therefore, when paying personal income tax, taxpayers need to seek help from reputable, experienced, and specialized experts in this matter such as a team of lawyers and public consultants. Viet An Law Firm.

If you have any questions about the personal income tax payment time limit, please contact Viet An Tax Agent for our best support!

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